Medellín, Colombia, March 3, 2013

Transcription

1 ISA FOURTH QUARTER FINANCIAL RESULTS Medellín, Colombia, March 3, ISA S.A. E.S.P. (BVC: ISA; OTC: IESFY) ( ISA or the Company ), a Colombian organization engaged in the businesses of Energy Transmission, Road Concessions, Telecommunications Transport and Intelligent Management of Real-Time Systems, today announced the financial results for the fourth quarter of. The unaudited figures are expressed in millions of Colombian pesos (). The consolidation process includes 100 of the companies where ISA holds control and the homologation of the accounting practices of each country (Chile, Brazil and Peru currently report based on IFRS International Financial Reporting Standards), according to Generally Accepted Accounting Principles (GAAP) in Colombia. ECONOMIC AND FINANCIAL RESULTS BY THE END OF Consolidated operating revenues were 3,601,325 million. EBITDA reached 2,011,674 million, with a 55.9 EBITDA margin. Net income was 433,048 million, with a 15.8 margin before minority interest. Consolidated assets were 25,567,362 million. For the period ended December, accumulated net income for ISA and its companies was 433,048 million, representing a 58.7 increase compared to the same period of the previous year. Both, the accumulated financial results for the period ended in December as well as the fourth quarter results were positively impacted by the recognition as a financial asset (formerly an intangible asset) of the Chilean and Brazilian concessions 1. As was explained in detail during the second quarter of, the General Accounting Office (Contaduría General de la Nación), in an attempt to properly reflect the economic reality of concessions, issued a technical concept that enables to determine whether the asset for a concession operator corresponds to a debtor (financial asset) or to an intangible, based on the analysis of the business model and the rights and guarantees stemming from the conditions agreed upon in the concession contract. On the other hand, the results include the impact from the early termination and subsequent renewal of Concession Contract 059/2001 in affiliate CTEEP 2, the net effect of the provision of the account receivable from the state of Sao Paulo in connection with Law 4819 in CTEEP and ISA Capital do Brasil in Brazil 1 and the 1 See Highlights from 3Q13 Results Report 2 See Highlights from 4Q12 Results Report

2 Page 2 de 19 consolidation of Evrecy Participações Ltda. in the first quarter of and of ITX Capital Participações Ltda and its subsidiaries Nelson Quintas Investimentos Globais Ltda. (NQIG), IPNET Servicos de Internet Ltda. and Nelson Quintas Telecomunicações do Brasil Ltda. (NQT) in the last quarter of. In addition, the conversion of the financial information of the foreign affiliates and subsidiaries generated variations in the various items of the financial statements, due to the devaluation effects of the Colombian peso against the U.S. Dollar and the revaluation of the Colombian peso against the Brazilian Real. However, the effect of the variations on the exchange rate is neutralized in the net result. EXCHANGE RATES 2012 average average Var 2012 close close Var / US DOLLAR 1, , , , REAL / US DOLLAR CPL / US DOLLAR / REAL (3.5) (4.9) / CPL (0.3) CONSOLIDATED INCOME STATEMENT Consolidated operating revenues For the period ended December, accumulated operating revenues reached 3,601,325 million, a 16.3 or 701,750 million decrease compared with the same period of This was mainly generated by the effects of the early termination and subsequent renewal of Concession Contract 059 in CTEEP, which absorbed the increase obtained in other countries. OPERATING REVENUES 4Q13 4Q12 (Figures in millions) 4Q Energy Transmission 670, , , ,447,554 3,352, , ,276 Road Concessions 232, ,695 43, , , , Telecommunications Transport 37,703 29,398 8, , ,687 34, Intelligent Management of Real-time Systems 22,962 23, ,288 89,172-1, TOTAL OPERATING REVENUES 964,157 1,049,426-85, ,601,325 4,303, , ,869 In the fourth quarter of, operating revenues decreased 8.1 given the lower revenues from energy transmission in Brazil. Composition of accumulated revenues by business Energy Transmission contributed 2,447,554 million, equivalent to 69.6 of the accumulated operating revenues of. This result represented a 27.0 decline, compared with the amount reported in the same period in 2012, mainly due to lower revenues from CTEEP. This decrease in Brazil absorbed the consolidated revenues from Evrecy Participações Ltda, and higher revenues in Peru that

3 Page 3 de 19 were mainly generated by the entry into operation of the Zapallal Trujillo project in Transmantaro at the end of Road Concessions contributed 25.5 of all accumulated revenues for the period ended December, equal to 918,264 million, representing a 22.8 increase compared with the same period last year. This was due to the recognition of the financial returns associated with the treatment of concessions as financial assets. Telecommunications Transport contributed 148,218 million, which represented 3.9 of total operating revenues. The accumulated revenues for the period ended December increased 30.4 compared with the accumulated revenues reported on December 2012, due to new service agreements, mainly in Peru and Colombia. Intelligent Management of Real-Time Systems accounted for 87,288 million equal to 2.4 of all accumulated revenues as of December and decreased 2.1 compared with the same period in This was due to lower regulated revenues in XM, which depend on the levels of investment and expenditures at the Company. The variations of the fourth quarter showing an increase in the Road Concessions and Telecommunications Transport businesses and decreased revenues in the Energy Transmission and Intelligent Management of Real- Time Systems businesses were due to the same reasons affecting the accumulated results. Consolidated revenues by country: In accumulated terms, the composition of revenues by country is as follows: Colombia contributed 38.0, Chile 25.6, Brazil 24.1 and Peru Q13 4Q12 (Figures in millions) 4Q Colombia 348, ,534-5, ,367,581 1,361,386 6, Chile 233, ,838 42, , , , Brazil 258, , , ,922 1,838, , Peru 109,042 79,915 29, , ,968 83, Others 14,329 9,151 5, ,210 35,685 7, TOTAL 964,157 1,049,426-85, ,601,325 4,303, , ,869 Operating costs and expenses Consolidated operating costs and expenses for decreased 10.9 ( 2,050,226 million) compared with the figure reported for the same period of This variation was due to the decline in the amortizations and depreciations due to the elimination of the amortization of intangible assets of road concessions in Chile and energy transmission in Brazil, recognized as financial assets since, partially offset by the inclusion of construction costs from these concessions.

4 Page 4 de 19 4Q13 4QT12 (Figures in millions) 4Q Sales and operating costs and expenses 450, ,504 64, ,624,665 1,432, , Depreciations 38,747 40,089-1, , , Amortizations 53, , , , , , Provisions 16,898 36,821-19, ,394 56,175 7, TOTAL 560, , , ,050,226 2,300, , ,064 The composition of operating costs and expenses by country is as follows: 38.2 in Colombia, 37.0 in Brazil, 12.4 in Chile and 11.2 in Peru. Operating costs and expenses for the fourth quarter declined 19.3 as a result of the reasons explained above for the results of the accumulated. Operating income As a result of the previously mentioned, ISA reached an accumulated consolidated operating income of 1,551,099 million for. This figure was 22.6 below the figure obtained in the same period last year, basically due to the decrease in revenues in Brazil. This was partially offset by the elimination of the amortization of the intangible asset in the Chilean and Brazian concessions. The operating margin was The operating income was 403,853 million for the fourth quarter of, 13.6 above the figure reported for the fourth quarter of 2012, since in 2012 included the partial amortization (61) of ISA Capital do Brasil s goodwill, derived from the anticipated renewal of concession contract 059/2001. The operating margin for the quarter increased 8 percentage points to reach EBITDA and EBITDA margin Accumulated consolidated EBITDA as of December was 2,011,674 million, a 30.7 decrease compared to the figure reported for the same period of 2012, mainly due to lower revenues in Brazil. EBITDA for the fourth quarter of was 524,272 million, 21.8 lower than the figure obtained in the fourth quarter of 2012, for the same reasons. While the impact in revenues was high, the EBITDA margin was partially offset by cost reduction efforts that lowere the impact. Accumulated EBITDA at December reached 55.9, while EBITDA margin for the fourth quarter was Non-operating result (loss) As of December, the non-operating accumulated result generated a expenditure increase compared to the same period of This behavior was explained by: Brazil: higher non-operating expenses as a result of the net effect of the provision of the account receivable from the state of Sao Paulo associated to Law 4819 in CTEEP and ISA Capital do Brasil, which was partially offset by higher profitability and lower financial expenses.

5 Page 5 de 19 Chile: higher financial expenses, mainly due to the financial update on preexisting infrastructure liabilities with the Ministry of Public Works. Peru: higher financial expenses due to the prepayment of Transmantaro s debt; higher interest expenditure due to the debt related with the Zapallal Trujillo project and higher expenditures due to the exchange rate difference between the U.S. dollar and the Peruvian Sol 3 on the balance of the accumulated fiscal credit. The non-operating result in the fourth quarter showed higher expenditures of 174.3, due to the reasons affecting the accumulated results. Taxes Income tax expenses decreased 86.2, from 666,488 million in the accumulated results at December 2012 to 91,648 million in the same period of. This variation was mainly due to lower taxes at CTEEP associated to lower revenues and the deferred tax in favor generated by the provision of the account receivable from the state of Sao Paulo associated to law 4819 and the higher tax from the payment of new assets during The composition of income tax by country was: Colombia 149,487 million, Brazil -126,012 million, Chile 22,010 million, Peru 40,481 million, and 5,682 million in other countries. During the fourth quarter of, income tax expenditures decreased 77.7 explained for the same reasons in the accumulated result of. Income before minority interest Consolidated income before minority interest for the accumulated period of was 569,943 million, a 41.0 decrease compared with the figure for the same period of The net margin before minority interest was 15.8 for the accumulated result and 23.8 for the fourth quarter. In, minority interest reached 136,895 million, an 80.2 decrease compared with the same period of 2012, explained by lower results in Brazil. In 4Q13, the minority interest decreased 50.0 compared with the same period of 2012, due to the fact that in the fourth quarter of 2012, the Company reported payments for new assets at CTEEP. Net income As of December, the accumulated net income was 433,048 million, representing 58.7 increase compared to 272,938 million reported in the same period of 2012, basically due to the positive impact of the recognition of the Chilean and Brazilian concessions as financial assets, as a result of the analysis of the business model and rights and guarantees of the agreed-upon conditions in the concession contract. This absorbed the negative effects of the early termination and subsequent renewal of Concession Contract 059/2001, considering that only is collected by ISA Capital do Brasil. 3 PEN/ Close = 2,796 vs 2012 Close = 2,551

6 Page 6 de 19 CONSOLIDATED BALANCE SHEET Assets Assets for ISA and its companies totaled 25,567,362 million, a 0.8 decrease compared to December This slight variation was due to the net effect of the provision of the account receivable from the state of Sao Paulo associated to Law , the inclusion of the financial assets into the Brazilian and Chilean concessions and lower cash due to debt amortization in Brazil, among others. The geographical distribution by country of the assets was concentrated in Chile, Colombia, Brazil and Peru with 34.2, 28.9, 25.1 and 11.3, respectively. Liabilities Consolidated liabilities were 14,411,340 million, a decrease of 6.9, as a result of the debt amortization in CTEEP and decreased liabilities for preexisting infrastructure in Chile. The distribution of liabilities by country was 46.1 in Chile, 24.2 in Colombia, 15.9 in Brazil, 13.3 in Peru and the remaining 0.5 in Bolivia and Argentina. Minority Interest Minority interest reached 3,704,545 million, an 11.2 decrease compared with the amount reported in December 2012; this situation was due to the partial repurchase of ISA Capital do Brasil s preferential shares and lower results in CTEEP. Equity Equity reached 7,451,477 million, a 21.9 increase compared with 6,110,615 million reported in 2012, mainly due to the recognition of the Brazilian and Chilean concessions as financial assets and the results for the period. CONSOLIDATED CASH FLOW As of December, the figure for cash and cash equivalent was 1,820,189 million, an increase of 143,283 million compared to the end of the 2012 period. In, the cash provided by operations reached 2,693,976 million, which included the partial collection of payment for the new assets at CTEEP. These resources were used as follows: 933,383 million in investment activities, 1,409,066 in financing activities and 208,244 million were used towards dividend payments. 4 Without the provision associated with the accounts receivable from the State of Sao Paolo, assets would have increased by 1.

7 Page 7 de 19 DEBT At the end of December, the consolidated financial debt was 8,698,468 million, a 7.4 decrease compared to December 2012; this was mainly due to the decrease in the debt in Brazil of debt was denominated in Unidades de Fomento -UF- (Chile), 19.4 in Colombian Pesos, 12.5 in Brazilian Reais, 19.7 in U.S. Dollars and 0.4 in other currencies. Approximately 74.1 of the debt is placed in the capital market and 25.0 in commercial loans of the debt is long-term and the remaining 6.7 is short-term. Consolidated debt (Figures in millions) Business 2012 CHILE 4,217,278 4,329, , ,189 Ruta del Maipo Road Concessions 2,193,030 2,197,950-4, ,138 Ruta del Maule Road Concessions 374, ,594-41, Ruta de la Araucanía Road Concessions 673, ,553 35, Ruta del Bosque Road Concessions 595, ,745-68, Ruta de los Rios Road Concessions 352, ,523-38, Internexa in Chile Telecommunications Transport 28,802 23,448 5, COLOMBIA 1,788,574 1,776,694 11, ISA Colombia Energy Transmission 1,427,574 1,424,694 2, Transelca Energy Transmission 361, ,000 11, Internexa Telecommunications Transport - 2,000-2, BRAZIL 1,169,464 2,165, , ISA Capital Energy Transmission 60,986 55,966 5, CTEEP Energy Transmission 792,084 1,885,360-1,093, IEMG Energy Transmission 38,898 45,305-6, IEPINHEIROS Energy Transmission 105, ,308 3, Serra Do Japi Energy Transmission 67,924 77,429-9, Internexa Participacoes Telecommunications Transport 74,230 74, Internexa Capital Telecommunications Transport 10,869 10,869 6 Internexa Brasil Telecommunications Transport 19,268 19, PERU 1,464,947 1,057, , ISA Perú Energy Transmission 23,359 26,883-3, REP Energy Transmission 444, ,322 12, Transmantaro Energy Transmission 984, , , Internexa in Peru Telecommunications Transport 12,589 14,146-1, BOLIVIA 51,134 55,457-4, ISA Bolivia Energy Transmission 51,134 55,457-4, ARGENTINA 7,071 7, Transamerican Telecom Telecommunications Transport 7,071 7, TOTAL 8,698,468 9,392, , ,514

8 Page 8 de 19 The following facts that impacted this result took place during the year: In Chile, Ruta de la Araucanía restructured its debt, which generated a decrease of the rate and the release of funds by the adjustment of reserve funds for the debt payment. In Colombia, ISA conducted a placement of bonds to finance the Company s cash flow in the amount of 220 billion, and exercised the Prepayment option of bonds of the Third Tranche of its Bond Program in the amount of 108,865 million. In addition, it canceled bonds of the Fifth Tranche of Securities Program in the amount of 110 billion. In turn, Transelca obtained a loan for 11 billion to finance its cash flow. In Brazil, CTEEP repaid credits for BRL 400 million and 149 million. Additionally, it made an anticipated payment forthe issue of debentures for BRL 700 million and conducted a new issue of debentures for BRL 500 million, obtaining the extension of the average life of its debt and a reduction of its indebtedness. INTERNEXA s companies in Brazil obtained the following loans: Internexa Participações in the amount of BRL 90.1 million; Internexa Capital in the amount of 13.2 million and Internexa Brasil in the amount of 10 million. In addition, IEPinheiros entered into a new agreement with BNDES and obtained disbursements for BRL 23.5 million in order to finance the construction of concession substations. In Peru, Consorcio Transmantaro CTM carried out an international issue under Rule 144A and Regulation S for 450 million Senior Unsecured Notes to repay bank liabilities as well as a subordinated debt with REP. This 10-year issuance was oversubscribed by 3.1x, with an issuance price of and an effective annual coupon rate of reaching a rate of return to maturity of 4.5. Additionally, CTM (via a fiduciary scheme) structured the financing of the Trujillo Chiclayo transmission line project via a synidicated loan with Banco de Credito del Peru, thus obtaining disbursements during for 51 million, in order to attend the needs of the project. REP carried out two bond issuances for the amounts of 10 million and PEN 77.3 million for the early payment of the standing issues of the First Program, as well as the third issue of the Second Corporate Bond Program; it amortized the issue of Commercial Papers in the amount of 15 million and prepaid a financial lease for 2.2 million. ISA PERU prepaid the loan held with the International Finance Corporation (IFC) in the amount of 6 million and entered into a loan agreement for 6.7 million. CAPEX and INVESTMENTS ISA s and its companies investments during the fourth quarter totaled 282,886 million. The accumulated result of reached 1,212,425 million, including direct investments and capital contributions. In Colombia, ISA invested 276,381 million, for the construction of transmission projects, replacement of assets and contributions to companies; TRANSELCA invested 38,143 million in operating assets and expansion projects; INTERNEXA invested 57,903 million in the expansion of its optic fiber network and capital contributions to its affiliates in Argentina and Brazil; in turn, XM allocated 13,664 million to new technological developments and capitalizations in Derivex and CRCC. In Brazil, investments were made for 450,232 million, of which 396,097 million were executed by CTEEP for grid reinforcements and capital contributions to those companies where it holds an interest.

9 Page 9 de 19 Also, PINHEIROS, SERRA DO JAPI, EVRECY and IEMG invested 51,762 million in the construction of its assets. In Perú, 321,494 million were invested mostly by Transmantaro in the implementation of projects awarded by the Peruvian Government ( 213,343 million), while REP invested 91,931 million in the expansion of its electrical grid. On the other hand, INTERNEXA invested 14,347 million in the expansion of the optic fiber network. In Chile, investments totaled 51,515 million, mostly executed by Ruta del Maipo in the implementation of the landscape urban project in Santiago s Southern Access. (Figures in millions) 1Q13 2Q13 3Q13 4Q13 Colombia 78, , ,552 80, , Brazil 78, , , , , Peru 68,969 51, ,683 98, , Chile 14,451 16,363 11,182 9,519 51, Other ,453 3, TOTAL 240, , , ,886 1,212, ISA S RESULTS, INDIVIDUAL Operating income The operating result for the twelve months of increased 0.1 compared to the same period of 2012, from 489,180 million to 489,548 million. This increase was mainly due to lower operating costs for 12,098 million, explained by an efficiency of maintenance costs, lower costs associated to construction projects for third parties and decline of depreciation expenses, as a result of the review and update of the remaining life of substation assets for the third quarter of The operating income for the fourth quarter decreased 9.1 compared with the fourth quarter of 2012 as net result of a 3.7 revenue decrease, specially connection revenues, and a 1.0 increase in costs and expenses, for fees paid to capture savings in the provisioning of assets; this effect is expected will be recovered in the coming years. EBITDA and EBITDA margin Accumulated EBITDA at December decreased 0.9, from 610,062 million in 2012 to 604,356 million in, as a result of lower operating revenues, mainly those associated to construction contracts with third parties. The EBITDA margin was On the other hand, the EBITDA decreased 9.7 compared with 4Q12, due to the same reasons of the accumulated result. Non-operating results (losses) Compared to the accumulated result of December 2012, the non-operating result increased 175,304 million, from -114,717 million in 2012 to 60,587 million in, mainly due to:

10 Page 10 de 19 Higher revenues under the equity method of foreign affiliates, mainly in Chile. Higher financial returns, revenues due to exchange rate difference in loans and lower financial expenses due to the optimization of debt costs. Higher revenues due to the exchange difference on loans to affiliates, due to the devaluation effects of the Colombian peso against the U.S. dollar. The non-operating result for the fourth quarter of increased 67,324 million compared with the same period of 2012, due to higher revenues under the equity method generated by the recognition of Brazilian and Chilean concessions as financial assets and lower financial expenses. Taxes Income tax provision increased 15.3 for the twelve months of. This variation was due to higher fiscal income, derived from lower financial expenses and higher revenues from the exchange difference. Tax provision increased 7.9 in the fourth quarter, compared with the same period of 2012 due to the same reasons explained for the accumulated result. Net income Net income in ended with 433,048 million, a 58.7 increase compared to 2012, mainly due to higher net income in Chile from the positive impact from the recognition of the economic reality of the toll road concessions as a financial asset. In turn, the net margin went from 27.1 in 2012 to 43.4 in. Net income for the fourth quarter increased compared with the fourth quarter of 2012, especially due to higher revenues under the equity method in companies with control. The net margin for the quarter was 42.0 compared to 19.7 for the same period last year. ISA S BALANCE SHEET, INDIVIDUAL As of the end of, the Company s assets were 10,266,517 million, 15.2 above the figure reported at the end of The increase was basically due to the recognition of Brazilian and Chilean concessions as financial assets under Colombian regulation, included in the permanent investment item. Liabilities were 2,818,975 million, representing a 0.9 increase compared with the figure reported at the end of 2012, mainly due to the increase of other liabilities for UPME deferred revenues. Equity at the end of was 7,447,542 million, 21.7 above the figure reported at the end of This variation was generated as a result of the change of Brazilian and Chilean concessions as financial assets and the increase of the results of the period.

11 Page 11 de 19 ISA S CASH FLOW, INDIVIDUAL At the end of, the figure for cash and cash equivalents was 315,233 million, an increase of 79,648 million compared to the end of In, the cash provided by the operations reached 563,933 million. These resources were allocated as follows: 168,605 million were utilized for investment activities, 107,437 million for financing activities and 208,244 million were used for the payment of dividends. HIGHLIGHTS OCTOBER DECEMBER Relevant Information ISA s Board of Directors, at meeting 738, unanimously approved to hold the Regular Shareholders Meeting on March 28, This meeting shall take place in the city of Medellin. The Agencia Nacional de Energía Eléctrica de Brasil (ANEEL) authorized to enter into a contract between CTEEP (ISA s subsidiary) and INTERNEXA (ISA s affiliate) to install information transmission networks on high-voltage lines granted to CTEEP in the state of Sao Paulo, Brazil. The International Finance Corporation -IFC-, and IFC GIF BRASIL - Fondo de Inversión -GIF- and INTERNEXA, entered into an agreement that will enable the financing and structuring of telecommunications and IT projects in Brazil. These entities will support the implementation of this sort of projects by incorporating capital in INTERNEXA s Brazilian affiliate Internexa Participações S.A. Interconexión Eléctrica S.A. E.S.P., prior authorization of its Board of Directors No.739, disbursed an external loan on October 28, in the amount of 41 million in favor of Internexa Participações. These funds will be used to finance the Investment Plan of its affiliate in Brazil. ISA s affiliate INTERNEXA S.A., acquired an information transmission network company operating in the State of Rio de Janeiro, Brazil as part of its expansion strategy, to improve its value offer and enable the enlargement of its customer portfolio. This operation was made for BRL190 million. Mr. Carlos Alberto Rodríguez López accepted position as Vice-President of Corporate Finance beginning December 9,. Moody s affirmed corporate credit rating Baa3, with a stable outlook to ISA. The determining factors for the rating included the ownership structure, the new corporate strategy, a transparent regulatory framework and a limited exposure supported by cash flows, the prudent financing of growth initiatives, especially in the toll road concessions sector, among other reasons. The Bondholder Meeting was held, with a quorum, with the assistance of Fiduciaria Corficolombiana S.A. as legal representative of the bondholders, in which ISA was authorized to amend its corporate purpose. The Energy and Gas Regulatory Commission -CREG- approved the basis for assets and the guidelines required to determine the remuneration of INTERCOLOMBIA S.A. E.S.P., ISA s new affiliate engaged in the

12 Page 12 de 19 energy transmission business in the country and the representation of the assets of ISA s National Transmission System, both in the existing grid, as well as the grid built under bidding processes. This report main contain forward-looking statements regarding the performance of ISA and should be taken in good faith by institutions; said forward-looking statements reflect the views of management and are based on currently available information, which assumes risks and uncertainties, including economic conditions and those from other markets, as well as the exchange rate variation and other financial variables respect to which ISA S.A. E.S.P. may not be held responsible, directly or indirectly, for financial operations that the public may conduct in reliance of the information hereby presented.

13 Page 13 de 19 ISA S DIRECT AND INDIRECT PARTICIPATION IN SUBSIDIARIES COMPANY ISA s direct Indirect Through the subsidiary: ENERGY TRANSELCA S.A. E.S.P RED DE ENERGIA DEL PERÚ REP TRANSELCA S.A. E.S.P. CONSORCIO TRANSMANTARO S.A ISA PERÚ S.A TRANSELCA S.A. E.S.P. ISA BOLIVIA S.A TRANSELCA S.A. E.S.P INTERNEXA S.A. CTEEP - COMPANHIA DE TRANSMISSÃO DE ENERGIA ELÉTRICA PAULISTA ISA CAPITAL DO BRASIL S.A. INTERLIGACAO ELETRICA NORTE E NORDESTE S.A. IENNE CTEEP INTERLIGACAO ELETRICA DE MINAS GERAIS S.A. IEMG CTEEP INTERLIGAÇÃO ELETRICA PINHEIROS S.A. IEPINHEIROS CTEEP INTERLIGAÇÃO ELETRICA SUL S.A. IESUL CTEEP INTERLIGAÇÃO ELETRICA DO MADEIRA S.A. - IEMADEIRA CTEEP INTERLIGAÇÃO ELÉTRICA SERRA DO JAPI CTEEP INTERLIGAÇÃO ELÉTRICA GARANHUNS S.A CTEEP EVRECY CTEEP INTERCONEXIÓN ELÉCTRICA COLOMBIA-PANAMA S.A INTERCONEXIÓN ELÉCTRICA COLOMBIA-PANAMA S.A.S ESP EMPRESA PROPIETARIA DE LA RED S.A. - EPR (*) INTERCHILE S.A ISA INVERSIONES CHILE LTDA INTERCOLOMBIA S.A. E.S.P INTERNEXA S.A. E.S.P ISA PERU PDI INTERVIAL COLOMBIA ROADS INTERVIAL CHILE S.A ISA INVERSIONES CHILE LTDA ISA INVERSIONES MAULE LTDA INTERNEXA S.A. Ruta del Maipo Sociedad Concesionaria S.A INTERVIAL CHILE S.A. Ruta del Maule Sociedad Concesionaria S.A INTERVIAL CHILE S.A. Ruta del Bosque Sociedad Concesionaria S.A INTERVIAL CHILE S.A. Ruta de los Rios Sociedad Concesionaria S.A INTERVIAL CHILE S.A. Ruta de la Araucanía Sociedad Concesionaria S.A INTERVIAL CHILE S.A. INTERVIAL Colombia S.A TELECOMMUNICATIONS INTERNEXA S.A TRANSELCA S.A. E.S.P. INTERNEXA S.A. (PERÚ) INTERNEXA S.A. INTERNEXA CHILE S.A INTERNEXA S.A. INTERNEXA BRASIL OPERADORA DE TELECOMUNICAÇOES S.A INTERNEXA PARTICIPAÇÕES S.A. Transamerican Telecomunication S.A. (INTERNEXA ARGENTINA S.A.) INTERNEXA S.A INTERNEXA PERU REDCA INTERNEXA S.A TRANSNEXA S.A. E.M.A INTERNEXA S.A INTERNEXA PERU ITX CAPITAL PARTICIPACOES LTDA INTERNEXA PARTICIPAÇÕES S.A. NQIG ITX CAPITAL PARTICIPACOES LTDA. NQT ITX CAPITAL PARTICIPACOES LTDA NQIG IPNET ITX CAPITAL PARTICIPACOES LTDA. INTELLIGENT MANAGEMENT OF REAL-TIME SYSTEMS XM S.A. E.S.P DERIVEX S.A XM S.A. E.S.P INTERNEXA S.A. Sistemas Inteligentes en Red S.A.S XM S.A. E.S.P. XM S.A. E.S.P FINANCIAL ISA CAPITAL DO BRASIL S.A INTERNEXA PARTICIPAÇÕES S.A INTERNEXA S.A. ISA INVERSIONES CHILE LTDA INTERNEXA S.A. E.S.P. ISA INVERSIONES MAULE INTERNEXA S.A. E.S.P. Financiera de Desarrollo Nacional S.A. (antes FEN) CAMARA DE RIESGO CENTRAL DE CONTRAPARTE DE COLOMBIA S.A. -CRCC XM S.A. E.S.P. ISA CAPITAL DO BRASIL S.A INFRASTRUCTURE PROYECTOS DE INFRAESTRUCTURA DEL PERU S.A.C TRANSELCA S.A. E.S.P.

14 Page 14 de 19 ISA S.A. E.S.P. - CONSOLIDATED - INCOME STATEMENT (Unaudited) JANUARY DECEMBER Figures in millions of Colombian pesos 4Q13 4Q12 Chang P Var. 4Q P OPERATING REVENUES Energy transmission services 603, ,438 (90,821) ,226,573 2,919,517 (692,944) ,156 Connection charges 44,550 93,984 (49,434) , ,399 (179,900) Dispatch and CND (National Dispatch Center) 10,995 11,765 (770) ,146 41,712 4, MEM Services 9,271 10,173 (902) ,109 41,126 (7,017) Roads 232, ,657 43, , , , Telecommunications 46,969 29,133 17, , ,810 34, Other services 16,085 20,276 (4,191) ,237 83,142 (31,905) TOTAL OPERATING REVENUES 964,157 1,049,426 (85,269) ,601,325 4,303,075 (701,750) ,869 COSTS AND OPERATING EXPENSES Operating costs and administration expenses 450, ,504 64, ,624,665 1,432, , Depreciation 38,747 40,089 (1,342) , , Amortization 53, ,474 (176,581) , ,753 (450,413) Provisions 16,898 36,821 (19,923) ,394 56,175 7, TOTAL COSTS AND OPERATING 560, ,888 (133,584) ,050,226 2,300,358 (250,132) ,064 EXPENSES Operating Income 403, ,538 48, ,551,099 2,002,717 (451,618) NON - OPERATING REVENUES Financial 93,008 88,757 4, , , , Exchange difference 74, ,129 (34,031) , ,762 98, Other 27,315 2,616,405 (2,589,090) ,507 2,661,821 (2,600,314) Total non-operating revenues 194,421 2,813,291 (2,618,870) ,634 3,114,154 (2,224,520) NON - OPERATING EXPENSES Financial 189, ,694 8, , ,744 (57,929) Exchange difference 133, ,473 (17,269) , , , Other -3,676 2,314,455 (2,318,131) ,981 2,334,856 (1,873,875) Total non-operating expenses 319,026 2,645,622 (2,326,596) ,779,142 3,485,056 (1,705,914) Non-operating results (124,605) 167,669 (292,274) (889,508) (370,902) (518,606) Income before taxes 279, ,207 (243,959) ,591 1,631,815 (970,224) Income tax provision 50, ,331 (175,094) , ,488 (574,840) Income before minority interests 229, ,876 (68,865) , ,327 (395,384) Minority interest (MI) 123, ,325 (123,054) , ,389 (555,494) NET INCOME 105,740 51,551 54, , , , EBITDA 524, ,419 (146,147) ,011,673 2,903,107 (891,434) ,044 EBITDA Margin Operating Margin Net Margin before MI Net Margin Amounts expressed in millions US dollars in this report are for information purposes only, and do not reflect normally utilized accounting conversion techniques. As of December 31,, the exchange rate was of 1.00= 1, (Source: Banco de la República de Colombia).

15 Page 15 de 19 ISA S.A. E.S.P. - CONSOLIDATED - BALANCE SHEET (Unaudited) DECEMBER Figures in millions of Colombian pesos Part CURRENT ASSETS Cash 479, ,455 50, Marketable investments 1,340, ,247,451 92, Accounts receivable, net 2,287, ,988,625 (701,291) ,187 Inventories 111, ,043 (914) Deferred charges and other assets 129, ,410 9, Total current assets 4,348, ,896,984 (548,973) ,257 NON-CURRENT ASSETS Long-term investments 956, , , Long-term accounts receivable 8,964, ,914,598 7,050, ,653 Inventories 59, ,428 1, Property, plant and equipment, net 3,208, ,031, , ,665 Deferred charges and other assets 5,147, ,148,548 (7,000,703) ,672 Reappraisal of assets 2,881, ,013,387 (131,707) ,496 Total non- current assets 21,219, ,874, , ,013 TOTAL ASSETS 25,567, ,770,989 (203,627) ,269 CURRENT LIABILITIES Outstanding bonds 300, ,934 (112,837) Financial liabilities 284, ,531 (652,477) Accounts payable 838, ,017,421 (178,882) Labor liabilities 32, ,919 11, Accrued liabilities and estimated provisions 201, ,773 25, Other liabilities 380, , , Total current liabilities 2,037, ,823,877 (786,573) ,057 LONG-TERM LIABILITIES Outstanding bonds 6,145, ,574, , ,190 Financial liabilities 1,968, ,468,086 (499,484) ,022 Accounts payable 1,120, ,554,263 (433,545) Labor liabilities 1, , Accrued liabilities and estimated provisions 791, ,931 23, Other liabilities 2,345, ,296,767 49, ,218 Total long-term liabilities 12,374, ,663,176 (289,140) ,422 TOTAL LIABILITIES 14,411, ,487,053 (1,075,713) ,479 Minority interests 3,704, ,173,321 (468,776) ,923 Subscribed and paid in capital 36, , Capital Surplus 1,445, ,445, Reserves 999, ,492 64, Net income 433, , , Cumulative translation adjustment 3, (9,091) 13, Equity revaluation 415, , Surplus from asset reappraisals 2,542, ,563,287 (20,883) ,319 Surplus from equity method 1,574, ,919 1,123, Total Shareholders Equity 7,451, ,110,615 1,340, ,867 TOTAL LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS EQUITY 25,567, ,770,989 (203,627) ,269 Amounts expressed in millions US dollars in this report are for information purposes only, and do not reflect normally utilized accounting conversion techniques. As of December 31,, the exchange rate was of 1.00= 1, (Source: Banco de la República de Colombia).

16 Page 16 de 19 ISA S.A. E.S.P. - CONSOLIDATED - CASH FLOW STATEMENT (Unaudited) JANUARY DECEMBER Figures in millions of Colombian pesos 2012 Cash flows from operating activities: Net income 433, , , Plus (minus) Adjustments to reconcile net income with the net cash provided by operating activities: Minority interest 136, ,389 (555,494) Depreciation of properties, plant and equipment 156, , Amortization of deferred and other assets 205, ,753 (450,413) Amortization of retirement pensions and extralegal benefits net 35,014 32,492 2, Provision for accounts receivable 451,987 1, , Inventory provision Investment provision 349 (64) Income tax provision 91, ,488 (574,840) Loss in property, plant, equipment and rights disposal and retirement 4,058 1,553 2, Cost for disposal of rights of anticipated renewal of contract 059/2001 in CTEEP - 2,300,318 (2,300,318) Income (expense) for foreign exchange rate conversion 316,401 33, , Equity method with share control (152,118) - (152,118) (79) Recovery of provisions - (1,458) 1, Accrued interest and commissions 451, ,512 (187,759) ,131,502 5,450,867 (3,319,365) -61 1,106 s in operating assets and liabilities: Debtors (413,334) (164,325) (249,009) 152 (215) Receivables for early contract renewal compensation 059/2001 1,896,606 (2,551,859) 4,448, Inventories 449 (77,441) 77, Deferred and other assets (8,840) 13,510 (22,350) -165 (5) Deferred costs for debt restructuring in Chile Accounts payable and other liabilities 37, ,713 (181,732) Labor liabilities 11,351 2,997 8, Estimated liabilities and provisions 30,870 5,192 25, Collections in favor of fourth parties 27, ,759 (187,905) Minority interest (534,347) (291,584) (242,763) 83 (277) Variation Shareholders equity (666) Cash flows in other operations: Retirement pension payments (26,873) (26,327) (546) 2 (14) Tax payments (459,242) (646,582) 187, (238) Net cash provided by operating activities 2,693,976 2,150, , ,398 Cash flows from investment activities: Variation of permanent and long term investments (63,178) 6,105 (69,283) (33) Sale of property, plant and equipment Intangible acquisitions (533,313) (818,612) 285, (277) Purchase of property, plant and equipment (337,862) (245,485) (92,377) 38 (175) Net cash used by investment activities (933,383) (1,057,380) 123, (484) Cash flows from financing activities: Interest received in cash 124,646 44,045 80, Interest and commissions paid in cash (616,617) (926,607) 309, (320) Dividends paid in cash (208,244) (245,904) 37, (108) Increase in financial obligations 370,894 1,427,340 (1,056,446) Bond Issue 1,567, , , Payment of financial obligations (1,666,112) (1,434,917) (231,195) 16 (865) Bond payment/decrease (1,189,563) (460,935) (728,628) 158 (617) Issue of shares Net cash (used by) provided for financing activities (1,617,310) (829,251) (788,059) 95 (839) Net increase in cash and cash equivalents 143, ,955 (120,672) Cash and cash equivalents at the beginning of period 1,676,906 1,412, , CASH AND CASH EQUIVALENTS AT END OF PERIOD 1,820,189 1,676, , Amounts expressed in millions US dollars in this report are for information purposes only, and do not reflect normally utilized accounting conversion techniques. As of December 31,, the exchange rate was of 1.00= 1, (Source: Banco de la República de Colombia).

17 Page 17 de 19 ISA S.A. E.S.P. - INDIVIDUAL - INCOME STATEMENT (Unaudited) JANUARY DECEMBER Figures in millions of Colombian pesos 4Q13 4Q12 4Q OPERATING REVENUES Energy transmission services 214, ,842 3, , ,892 10, Connection charges 24,584 30,053 (5,469) , ,928 (2,687) Infrastructure Projects 1,768 9,762 (7,994) ,757 29,500 (18,743) Telecommunications 4,861 4, ,403 17, Other services 6,248 6, ,186 22,685 (1,499) TOTAL OPERATING REVENUES 251, ,241 (9,684) ,128 1,008,858 (11,730) COSTS AND OPERATING EXPENSES Operating costs and administration expenses 116, ,586 5, , ,449 (6,180) Depreciation 22,120 23,506 (1,386) ,183 91,773 (4,590) Amortization 1,969 1, ,469 7, Provisions 197 2,643 (2,446) ,659 4,045 (1,386) TOTAL COSTS AND OPERATING EXPENSES 141, ,632 1, , ,678 (12,098) Operating Income 110, ,609 (11,080) , , NON - OPERATING REVENUES Financial 7,418 7,980 (562) ,468 31,329 4, Exchange difference 2,669 9,312 (6,643) ,534 20,865 25, Equity Method 83,695 22,595 61, , , , Other 2,415 5,226 (2,811) ,919 14,623 (7,704) Total no-operating revenues 96,197 45,113 51, , , , NON - OPERATING EXPENSES Financial 31,730 35,121 (3,391) , ,608 (19,950) Exchange difference 1,046 11,567 (10,521) ,387 36, Equity Method 37,783 41,993 (4,210) , ,964 5, Other 2, , ,024 1,835 1, Total no-operating expenses 73,026 89,266 (16,240) , ,597 (13,389) Non-operating results 23,171 (44,153) 67, ,587 (114,717) 175, Income before taxes 133,700 77,456 56, , , , Income tax provision 27,960 25,902 2, , ,525 15, NET INCOME 105,740 51,554 54, , , , EBITDA 138, ,959 (14,993) , ,062 (5,706) EBITDA margin Operating margin Net margin Amounts expressed in millions US dollars in this report are for information purposes only, and do not reflect normally utilized accounting conversion techniques. As of December 31,, the exchange rate was of 1.00= 1, (Source: Banco de la República de Colombia).

18 Page 18 de 19 ISA S.A. E.S.P. - INDIVIDUAL - BALANCE SHEET (Unaudited) DECEMBER Figures in millions of Colombian pesos Part CURRENT ASSETS Cash 137, ,797 39, Marketable investments 178, ,789 40, Accounts receivable, net 518, ,318 (11,300) Inventories 2, ,284 (25,386) Deferred charges and other assets 63, ,658 (9,283) Total current assets 899, ,846 33, NON-CURRENT ASSETS Long-term investments 3,933, ,727,530 1,205, ,041 Long-term accounts receivable 16, ,533 2, Inventories 51, ,328 (1,361) Property, plant and equipment, net 2,493, ,368, , ,294 Deferred charges and other assets 329, ,117 10, Reappraisal of assets 2,542, ,563,287 (20,883) ,319 Total non- current assets 9,366, ,046,459 1,320, ,861 TOTAL ASSETS 10,266, ,912,305 1,354, ,328 CURRENT LIABILITIES Outstanding Bonds ,000 (110,000) Financial liabilities 7, , Related financial parties 45, ,908 13, Accounts payable 235, ,363 (7,530) Labor liabilities 12, ,639 4, Accrued liabilities and estimated provisions 27, ,173 (25,445) Other liabilities 9, ,110 (1,783) Total current liabilities 338, ,897 (125,504) LONG-TERM LIABILITIES Outstanding bonds 1,102, , , Financial liabilities 317, ,625 1, Related parties 244, ,060 (10,175) Accounts payable 17, ,462 (33,251) Labor liabilities 1, , Accrued liabilities and estimated provisions 141, ,359 5, Other liabilities 655, ,398 77, Total long-term liabilities 2,480, ,328, , ,287 TOTAL LIABILITIES 2,818, ,792,599 26, ,463 Subscribed and paid in capital 36, , Capital Surplus 1,445, ,445, Reserves 999, ,492 64, Net income 433, , , Surplus from asset reappraisals 2,542, ,563,287 (20,883) ,319 Surplus from equity method 1,574, ,919 1,123, Equity revaluation 415, , Total Shareholders Equity 7,447, ,119,706 1,327, ,865 TOTAL LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS EQUITY 10,266, ,912,305 1,354, ,328 Amounts expressed in millions US dollars in this report are for information purposes only, and do not reflect normally utilized accounting conversion techniques. As of December 31,, the exchange rate was of 1.00= 1, (Source: Banco de la República de Colombia).

19 Page 19 de 19 ISA S.A. E.S.P. - INDIVIDUAL - CASH FLOW STATEMENT (Unaudited) JANUARY DECEMBER Figures in millions of Colombian pesos 2012 Var. Var. Cash flows from operating activities: Net income 433, , , Plus (minus) Adjustments to reconcile net income with the net cash provided by operational activities: Depreciation of properties, plant and equipment 87,183 91,773 (4,590) Amortization of deferred and other assets 7,469 7, Amortization of retirement pensions and extralegal benefits net 17,497 17,652 (155) (Recovery-Write Off) Provision of accounts receivable (2,456) 344 (2,800) (1) (Recovery) Provision for investments 300 (257) Recovery provision for investments (241) (44) (197) (0) Income tax provision 117, ,525 15, Loss in property, plant and equipment disposal and retirement 519 1,135 (616) (Expense) Income for foreign exchange rate conversion (11,008) 15,247 (26,255) (6) Income for equity method (142,735) (8,099) (134,636) (74) Accrued interest and commissions 103, ,053 (25,828) , ,679 (18,791) s in operating assets and liabilities: Debtors 35, ,836 (74,945) Inventories 1,800 (19,471) 21, Deferred and other assets 2,234 (187) 2, Accounts payable 119, ,361 (19,418) Labor liabilities 4, , Estimated liabilities and provisions (119,614) (78,623) (40,991) 52.1 (62) Other liabilities 121,533 59,893 61, Cash flows in other operations: Retirement pension payments (12,238) (12,421) (6) Payment of taxes and contributions (200,256) (185,206) (15,050) 8.1 (104) Net cash provided by operation activities 563, ,501 (79,568) Cash flows from investment activities: Purchase of permanent and long term investments (58,532) (7,165) (51,367) (30) Dividends received 120,974 64,885 56, Sale of property, plant and equipment (412) Reimbursement of education costs - 37,282 (37,282) Purchase of property, plant and equipment (226,237) (114,260) (111,977) 98.0 (117) Additions (disposals) of deferred and other assets (4,810) (9,508) 4, (2) Net cash (used by) provided for investment activities (168,605) (28,354) (140,251) 6.5 (88) Cash flows from financing activities: Interest received in cash 14,462 13,302 1, Interest paid in cash (115,787) (186,132) 70, (60) Dividends paid (208,244) (245,904) 37, (108) Increase in financial liabilities - 71,410 (71,410) Bond issue 220, , Payment of financial liabilities (7,247) (215,421) 208, (4) Bond payment (218,865) - (218,865) 0.0 (114) Increase in loans with economically related entities - 26,011 (26,011) Net cash used by financing activities (315,681) (536,734) 221, (164) Net increase in cash and cash equivalents 79,647 78,413 1, Cash and cash equivalents at the beginning of the year 235, ,173 78, CASH AND CASH EQUIVALENTS AT THE YEAR END 315, ,586 79, Amounts expressed in millions US dollars in this report are for information purposes only, and do not reflect normally utilized accounting conversion techniques. As of December 31,, the exchange rate was of 1.00= 1, (Source: Banco de la República de Colombia).